This means borrowers could make initial monthly payments of only £561 on a £100,000 repayment mortgage.
One product which is likely to prove attractive to borrowers, and first time buyers in particular, is a 3-Year Fixed Rate Mortgage with no Higher Lending Charge (MIG) - saving customers hundreds of pounds at the outset.
Jennifer Holloway, head of media relations at Skipton Building Society, commented: "For borrowers looking to set their repayments for the medium term, our 3-year and 5-year fixed rate deals will fit the bill - especially as one has no Higher Lending Charge to help ease the costs involved in buying a home."
Key features - New Fixed Rate Mortgages
- 3-Year Fixed Rate Mortgage - fixed at 4.59% to 31 October 2008
- 3-Year Fixed Rate Mortgage with no Higher Lending Charge (MIG) to 95% LTV - fixed at 5.19% to 31 October 2008
- 5-Year Fixed Rate Mortgage - fixed at 4.59% to 31 October 2010
- Revert to the Society's residential SVR - currently 5.89% - after fixed rate period
- Available up to 95% LTV with free Higher Lending Charge (MIG) up to 90% LTV (except on 5.19% 3-Year Fixed Rate Mortgage)
- Free legal fees (through Skipton Home Conveyancing Service) and free valuation on all residential remortgage cases
- Free accident, sickness and unemployment (ASU) cover for six months
- Flexible benefits - daily interest, overpayments and payment holidays
- Capital repayments of up to 10% of the original loan allowed each year, without charge, within fixed rate period
- No extended tie-ins. Early repayment charges as follows:
3-Year Fixed Rate Mortgages - 5% to 31 October 2006, 4% to 31 October 2007 and 3% to 31 October 2008
5-Year Fixed Rate Mortgage - 5% to 31 October 2006, 4% to 31 October 2007 and 3% to 31 October 2010
- £100 application fee (except on 5.19% 3-Year Fix) - payable upfront and non-refundable
- £349 completion fee - can be added to the loan.
